ACC3003 : Issues in Behavioural Finance (Inactive)
- Inactive for Year: 2024/25
- Module Leader(s): Professor Darren Duxbury
- Owning School: Newcastle University Business School
- Teaching Location: Newcastle City Campus
Semesters
Your programme is made up of credits, the total differs on programme to programme.
| Semester 1 Credit Value: | 10 |
| Semester 2 Credit Value: | 10 |
| ECTS Credits: | 10.0 |
| European Credit Transfer System | |
Aims
This module aims to provide students with an alternative view to the rational perspective of traditional finance theory. Drawing on insights from psychology the module explores the psychological biases in financial decision making, and examines the impact of these biases on investor and corporate behaviour.
Outline Of Syllabus
Foundations and review of theoretical perspectives:
• Foundations of traditional finance theory and efficient markets
• Limits to arbitrage
• Investor psychology: heuristics and biases
• Prospect theory, loss aversion and mental accounting
• Risk perception and preference
Applications (a selection of the following applications will be covered - the list is non-exhaustive and subject to change):
• Equity premium puzzle
• Over-reaction and under-reaction
• Momentum and contrarian trading strategies
• Investor overconfidence
• Disposition effect and house money effect: prior outcomes
• Investor sentiment
• Emotions in financial decisions
• Capital structure
• Dividends
• Mergers and acquisitions
Teaching Methods
Teaching Activities
| Category | Activity | Number | Length | Student Hours | Comment |
|---|---|---|---|---|---|
| Scheduled Learning And Teaching Activities | Lecture | 15 | 2:00 | 30:00 | PIP lectures/live synchronous |
| Guided Independent Study | Assessment preparation and completion | 1 | 87:00 | 87:00 | As a specialist, research-led module, the material covered is broad and complex in nature |
| Guided Independent Study | Assessment preparation and completion | 2 | 10:00 | 20:00 | Feedback via on-line MCQs and/or essay plan. |
| Guided Independent Study | Directed research and reading | 15 | 3:00 | 45:00 | Directed pre/post lecture reading. Specialist, research-led module, coverage is broad and complex. |
| Guided Independent Study | Directed research and reading | 6 | 2:00 | 12:00 | Directed pre/post small grp reading. Specialist, research-led module, coverage is broad and complex. |
| Scheduled Learning And Teaching Activities | Small group teaching | 6 | 1:00 | 6:00 | PIP seminars/live synchronous |
| Total | 200:00 |
Teaching Rationale And Relationship
A specialist, research-led module, with broad and complex academic coverage reflected in learning outcomes. Teaching and learning comprises a mixture of structured guided learning to raise awareness of key concepts and topics, which is supported via scheduled small group sessions to explore further via application/critique. Formative assessment and feedback supported via small group sessions, on-line MCQs and essay plans.
Assessment Methods
The format of resits will be determined by the Board of Examiners
Exams
| Description | Length | Semester | When Set | Percentage | Comment |
|---|---|---|---|---|---|
| Written Examination | 180 | 2 | A | 100 | N/A |
Formative Assessments
Formative Assessment is an assessment which develops your skills in being assessed, allows for you to receive feedback, and prepares you for being assessed. However, it does not count to your final mark.
| Description | Semester | When Set | Comment |
|---|---|---|---|
| Computer assessment | 2 | M | Online MCQ Test |
| Prob solv exercises | 1 | M | Participation in small group class provides opportunity to evaluate understanding via comparison to model answers and/or discussion |
| Essay | 2 | M | Draft essay plan submitted for comment/feedback |
Assessment Rationale And Relationship
The examination will assess the ability to explain, apply and critique concepts/models from traditional and behavioural finance and as such provides an unambiguous test of the module learning outcomes.
Formative feedback is available to students via a number of routes. The primary vehicles are i) online MCQs (including questions drawn from a sample exam paper) and ii) the opportunity to submit for feedback extended essay plans based on questions from a sample exam paper. Students can also obtain feedback through participation in small group classes.
Reading Lists
Timetable
- Timetable Website: www.ncl.ac.uk/timetable/
- ACC3003's Timetable